Payroll Fundamentals Flashcards
7 cards from real CPS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Payroll Fundamentals flashcards as text
An employee works 46 hours in a workweek. How many overtime hours must be paid at the FLSA overtime rate?
Answer: 6 hours
FLSA requires overtime pay for all hours worked over 40 in a workweek, so 46 - 40 = 6 overtime hours.
Which IRS form must employers file quarterly to report federal income tax withheld and FICA taxes?
Answer: Form 941
Form 941, the Employer's Quarterly Federal Tax Return, reports wages paid, federal income tax withheld, and FICA taxes each quarter.
What is the employer's share of the Social Security tax rate applied to wages up to the wage base?
Answer: 6.2%
Employers pay 6.2% for Social Security (OASDI) on wages up to the annual wage base, matching the employee's contribution.
A salaried exempt employee earns $52,000 annually. What is her gross pay per biweekly pay period?
Answer: $2,000.00
$52,000 ÷ 26 biweekly periods = $2,000.00 per pay period.
Under the FLSA, which of the following workers is most likely classified as exempt from overtime?
Answer: A systems analyst earning $68,000/year with primary duty of office work
To qualify for the administrative exemption, an employee must earn at least $684/week and have a primary duty of office/non-manual work exercising discretion.
Which of the following is a pre-tax deduction that reduces an employee's federal taxable wages?
Answer: Traditional 401(k) contributions
Traditional 401(k) employee contributions are made pre-tax, reducing the employee's federal taxable income in the contribution year.
What is the purpose of Form W-4 in the payroll process?
Answer: To instruct the employer on the amount of federal income tax to withhold
Form W-4 (Employee's Withholding Certificate) tells the employer how much federal income tax to withhold from each paycheck.